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Results based on monthly compounding
Past performance does not guarantee future results
The Schwab U.S. Dividend Equity ETF (SCHD) is an exchange-traded fund that tracks the performance of the Dow Jones U.S. Dividend 100 Index. SCHD offers exposure to high-dividend yielding U.S. stocks with a strong record of consistently paying dividends.
SCHD is popular among dividend investors for its:
Current Dividend Yield
3.91%
Dividend Frequency
Quarterly
5-Year Div Growth Rate
~11.44%
Expense Ratio
0.06%
Assets Under Management
$49.7B
Inception Date
Oct 20, 2011
SCHD selects stocks based on:
| Rank | Symbol | Company | Weight | Sector | Dividend Yield |
|---|---|---|---|---|---|
| 1 | COP | ConocoPhillips | 4.44% | Energy | 3.18% |
| 2 | VZ | Verizon Communications | 4.21% | Communication Services | 6.52% |
| 3 | KO | Coca-Cola Co. | 4.21% | Consumer Staples | 2.87% |
| 4 | HD | Home Depot | 4.11% | Consumer Discretionary | 2.35% |
| 5 | BMY | Bristol Myers Squibb | 4.03% | Healthcare | 4.11% |
| 6 | MO | Altria Group | 3.98% | Consumer Staples | 8.43% |
| 7 | CSCO | Cisco Systems | 3.95% | Information Technology | 3.05% |
| 8 | ABBV | AbbVie Inc. | 3.91% | Healthcare | 3.72% |
| 9 | CVX | Chevron Corporation | 3.89% | Energy | 4.01% |
| 10 | LMT | Lockheed Martin | 3.81% | Industrials | 2.42% |
| Period | SCHD Return | S&P 500 |
|---|---|---|
| 1 Year | 7.87% | 8.25% |
| 3 Year | 9.12% | 10.85% |
| 5 Year | 12.73% | 14.89% |
| 10 Year | 10.47% | 12.61% |
| Since Inception | 11.69% | 13.52% |
| Year | Annual Dividend | Growth Rate | Yield |
|---|---|---|---|
| 2025 | $1.11 | 12.12% | 3.91% |
| 2024 | $0.99 | 12.23% | 3.67% |
| 2023 | $0.89 | 3.77% | 3.65% |
| 2022 | $0.85 | 13.90% | 3.68% |
| 2021 | $0.75 | 10.88% | 3.13% |
Focus on long-term dividend growth rather than just high current yield. SCHD provides a balance of current income and growing dividends over time.
"The strategy prioritizes companies with consistent dividend increases, indicating financial strength and shareholder commitment."
Invest a fixed amount in SCHD at regular intervals, regardless of its price. This strategy helps reduce the impact of volatility and market timing risk.
"Dollar-cost averaging into SCHD allows investors to accumulate more shares when prices are low, automatically buying the dips."
Use SCHD as a core holding, complemented by satellite positions in specific sectors, factors, or individual stocks to enhance returns or adjust risk.
"This approach provides a stable foundation with SCHD while allowing you to take advantage of specific opportunities through satellite positions."
Use SCHD to generate a reliable stream of passive income, particularly suitable for retirees or those seeking regular cash flow from investments.
"SCHD's quality focus provides more sustainable income than many higher-yielding alternatives that may face dividend cuts."
Combine regular investments with dividend reinvestment to accelerate portfolio growth over time, creating a compounding effect that grows stronger each year.
"The dividend snowball grows exponentially as reinvested dividends generate their own dividends, creating a virtuous cycle of compound growth."
Optimize the tax treatment of SCHD dividends by strategically placing the ETF in the most appropriate account type based on your tax situation.
"The qualified dividend treatment of most SCHD distributions means lower tax rates in taxable accounts compared to ordinary income."
Explore our comprehensive collection of calculators designed to help you maximize your SCHD investment strategy and dividend income potential.
Calculate potential dividend income and growth from your SCHD investment over time.
Use CalculatorCalculate the compound growth of your investment when reinvesting all dividends back into SCHD.
Use CalculatorCompare long-term performance and income between SCHD and JEPI ETFs with customizable parameters.
Use CalculatorProject how your effective dividend yield grows over time based on your initial investment.
Use CalculatorPlan your retirement with SCHD dividends and see how much you need to invest to reach your income goals.
Use CalculatorOptimize your tax strategy for SCHD dividends based on your tax bracket and account types.
Use CalculatorProject future value of your SCHD investment with customizable growth parameters.
Use CalculatorCompare these two popular dividend ETFs to see which aligns better with your investment strategy.
Use CalculatorVisualize how reinvested dividends accelerate your wealth building over time through compound growth.
Use CalculatorCompare total returns between SCHD and S&P 500 index under different market conditions.
Use CalculatorPlan your cash flow with this calculator showing when and how much you'll receive in dividends.
Use CalculatorCalculate how dollar cost averaging into SCHD can reduce risk and build wealth over time.
Use CalculatorOptimize how much of your portfolio should be allocated to SCHD based on your risk tolerance.
Use CalculatorCompare returns between SCHD and treasury bonds across different time horizons and interest rate environments.
Use CalculatorCalculate how SCHD investments can protect against inflation through dividend growth.
Use CalculatorCompare these dividend ETFs on total return, yield, and portfolio fit with your investment goals.
Use CalculatorCalculate optimal purchase timing around ex-dividend dates to maximize dividend captures.
Use CalculatorCalculate the sustainable withdrawal rate from your SCHD portfolio for retirement planning.
Use CalculatorCompare these dividend growth ETFs on performance, holdings, and dividend growth metrics.
Use CalculatorAnalyze how SCHD's sector allocation affects your portfolio diversification and risk profile.
Use CalculatorRun historical backtests for SCHD performance across different market cycles and timeframes.
Use CalculatorCompare long-term results of SCHD investments vs high-yield savings accounts with compounding interest.
Use CalculatorCalculate how much SCHD you need to replace a specific percentage of your current income in retirement.
Use CalculatorCompare dividend income vs growth potential between these two Schwab ETFs over time.
Use CalculatorCalculate after-tax returns of SCHD investments based on your tax situation and account types.
Use CalculatorAnalyze dividend aristocrat components within SCHD and their contribution to overall yield.
Use CalculatorCompare dividend income and total returns between SCHD and popular REIT ETFs over time.
Use CalculatorCompare investing a lump sum in SCHD vs dollar-cost averaging over different time periods.
Use CalculatorCalculate how long it takes for dividend income to recover your initial investment in SCHD.
Use CalculatorCalculate potential returns from implementing a dividend capture strategy with SCHD.
Use CalculatorCompare long-term returns between investing in SCHD vs creating a CD ladder strategy.
Use CalculatorCalculate if the 4% withdrawal rule is sustainable with an SCHD-focused retirement portfolio.
Use CalculatorAnalyze potential drawdowns in an SCHD portfolio based on historical market stress scenarios.
Use CalculatorCompare yield, returns, and portfolio composition between these popular dividend ETFs.
Use CalculatorCalculate potential tax savings through strategic tax-loss harvesting with SCHD and similar ETFs.
Use CalculatorCompare income and total return between an SCHD investment and a bond ladder strategy.
Use CalculatorCalculate how an SCHD portfolio can help you achieve Coast Financial Independence.
Use CalculatorAnalyze SCHD's historical dividend growth trajectory and project future dividend increases.
Use CalculatorCompare returns between SCHD and commodities as inflation hedges and portfolio diversifiers.
Use CalculatorCalculate Sharpe ratio and other risk-adjusted metrics for SCHD compared to other investments.
Use CalculatorCalculate foreign tax credits and implications for international investors holding SCHD.
Use CalculatorAssess how sequence of returns risk affects an SCHD portfolio during retirement withdrawals.
Use CalculatorAnalyze the sustainability of SCHD's dividend payments based on underlying holdings' payout ratios.
Use CalculatorCompare income generation between SCHD's dividend approach and QYLD's covered call strategy.
Use CalculatorCalculate potential returns and risks of using leverage when investing in SCHD.
Use CalculatorCompare income streams from SCHD dividends versus purchasing an annuity for retirement.
Use CalculatorAnalyze how SCHD has performed during past economic downturns and market corrections.
Use CalculatorCalculate optimal strategies for including SCHD in estate planning and generational wealth transfer.
Use CalculatorCompare inflation protection and overall returns between SCHD and I-Bonds over various timeframes.
Use CalculatorCalculate the margin of safety in SCHD's underlying holdings based on fundamental analysis.
Use CalculatorSCHD (Schwab U.S. Dividend Equity ETF) is an exchange-traded fund that tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-quality dividend-paying U.S. stocks with a strong record of dividend payments. The fund was established in October 2011 and has become one of the most popular dividend ETFs due to its quality focus, low expense ratio, and solid dividend growth history.
As of May 2025, SCHD's dividend yield is approximately 3.91%. This yield varies as market prices and dividend payments change over time. SCHD's yield is typically higher than the S&P 500 average yield (currently around 1.5%) but lower than some high-yield ETFs that may include less financially stable companies.
SCHD pays dividends quarterly, typically in March, June, September, and December. The exact payment dates may vary slightly each quarter, but the ex-dividend dates are usually announced in advance. Most brokerages offer dividend reinvestment options (DRIP) that allow automatic reinvestment of these quarterly dividends.
SCHD has a very low expense ratio of 0.06%, making it one of the more cost-effective dividend ETFs available. This means for every $10,000 invested, you pay just $6 annually in fees. This low cost structure is a significant advantage compared to many mutual funds and actively managed ETFs with similar objectives.
SCHD has delivered solid returns since its inception in 2011, with a 10-year annualized return of approximately 10.47% as of 2025. It has also demonstrated consistent dividend growth over time, with an average dividend growth rate of about 11.44% over the past 5 years. While SCHD has generally underperformed the S&P 500 during strong growth markets, it has often outperformed during market corrections due to its focus on quality value stocks.